Tuesday, May 10, 2011

Nestoil seals deal on OML 42 with Shell

Nestoil Plc led consortium – NECONDE Energy Limited - has signed a Sale Purchase Agreement on the Oil Mining Lease OML 42 with its original owners, Shell Petroleum Development Company, Total E&P Limited and Nigeria Agip Oil Company Limited.

The Nestoil consortium emerged winners of 45 per cent stake in the oil block sold by the oil majors after a keenly contested bid.

Five blocks, OML 26, 30, 34, 40 and 42 located in the western swamps of the Niger Delta, were hitherto operated by Shell, while French giants Total, Italy’s ENI and Nigeria National Petroleum Corporation (NNPC) were partners.

While the Nestoil outfit now holds 45 per cent of OML 42, the outstanding 55 per cent of the block, believed to hold over a billion barrels of Crude Oil and over three trillion cubic feet of gas, is held by NNPC.